Tihama gets CMA nod on capital increase via SAR 350 mln rights issue

Logo of Tihama Advertising and Public Relations Co.

The Capital Market Authority (CMA) approved Tihama Advertising and Public Relations Co.’s application for a capital increase via a SAR 350 million rights issue, according to a statement today, Oct. 5.

The increase will be limited to the shareholders who are registered at the Security Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general assembly meeting (EGM), which will be determined by the board of directors at a later date.

The offering price and the number of shares offered for subscription will be determined by Tihama after market closing on the day when the extraordinary general assembly (EGM) meeting is held.

The CMA's approval should not be considered as a recommendation to participate in the offer nor invest in the company's shares, the statement noted.

The approval merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

In February, Tihama’s shareholders approved a capital cut by 71.43% to SAR 50 million from SAR 175 million, Argaam reported.

Earlier, the board recommended a capital reduction by SAR 125 million through cancelling shares, and then capital will be increased by SAR 350 million via a rights issue.

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